FMCG Glossary

What is S&OP?

Sales and Operations Planning

Definition

Sales and Operations Planning (S&OP) is the monthly cross-functional business planning process that aligns demand, supply, inventory, finance, and commercial plans to create a single, agreed operational plan for the business.

Examples of S&OP in FMCG

  • A monthly S&OP cycle: Demand Review → Supply Review → Pre-S&OP → Executive S&OP
  • Commercial team presenting demand upside from a new promotional programme at the demand review
  • Supply planning flagging a manufacturing constraint and evaluating mitigation options at supply review

S&OP in the FMCG Industry

S&OP (and its more advanced variant, IBP — Integrated Business Planning) is the operational heartbeat of FMCG supply chains. It's the forum where commercial intent meets operational reality. Ineffective S&OP results in excess stock, service failures, and cash inefficiency. World-class S&OP is characterised by a single number forecast, high forecast accuracy, and fast decision-making.

Why S&OP Matters for Your FMCG Career

S&OP participation is expected in demand planning, supply chain, and commercial finance roles. Demand Planners typically own the demand review input, while Supply Chain Managers lead the supply review. Senior commercial leaders (Sales Director, CFO) attend the Executive S&OP and make key trade-off decisions.

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